NEW YORK – Southwestern Energy said it will cut 1,100 jobs, or about 44 per cent of its workforce, as the oil and gas company deals with a drop in prices.
The company, the third-largest natural gas producer in the U.S., had about 2,500 employees before the announced layoffs, a Southwestern Energy spokeswoman said.
Southwestern Energy Co. said in a government filing Thursday that it had no drilling rigs in operation at the start the year and expects drilling activity to decline. Remaining employees will work on the company’s wells, pipelines and other operations.
An oversupply of oil and natural gas is bringing prices down. Crude prices are down about 38 per cent and natural gas prices are down about 27 per cent from a year ago. As a result, thousands of jobs have been slashed in the energy sector over the past year.
Southwestern Energy said the job cuts will save it about $150 million to $175 million a year. It expects the layoffs to be completed by the end of the first quarter.
Shares of the Houston company rose $1.42, or 19 per cent, to close at $8.80.